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AU Optronics Corp. Reports Third Quarter 2013 Financial Results (2013.10.30)

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the third quarter of 2013(1)

Consolidated revenues in the third quarter of 2013 were NT$107,081 million (US$3,622 million)(2), down 4.7% from the previous quarter. Gross profit was NT$10,266 million (US$347 million), with the gross margin of 9.6%. Operating profit was NT$3,374 million (US$114 million), with the operating margin of 3.2%. AUO's net income for the third quarter of 2013 was NT$2,510 million (US$85 million). Net income attributable to owners of Company was NT$2,490 million (US$84 million), with a basic EPS of NT$0.27(3) (US$0.09 per ADR). 

For the first nine months of 2013, AUO reported consolidated revenues of NT$313,660 million (US$10,611 million), with net income of NT$3,172 million (US$107 million) or a basic EPS of NT$0.35(3) (US$0.12 per ADR).

3Q 2013 Result Highlights

AUO's unaudited consolidated results for the third quarter of 2013 were highlighted as below: 

  • Revenue was NT$107,081 million, down 4.7% quarter-over-quarter
  • Net income was NT$2,510 million
  • Basic EPS was NT$0.27(3)
  • Gross margin was 9.6%
  • Operating margin was 3.2%
  • EBITDA(4) margin was 17.6%

In the third quarter of 2013, large-sized panel(5) shipments totaled around 29.3 million units, down 3.9% quarter-over-quarter. Shipments of small-and-medium-sized panels reached around 44.1 million units, up by 20.5% quarter-over-quarter.

Looking back to the third quarter, panel price declines were deeper than expected due to the inventory adjustment of TV brands. Through the effective cost control and product mix optimization, AUO's operating margin and EBITDA margin for the third quarter still achieved 3.2% and 17.6%, respectively. Meanwhile, thanks to the prudent inventory management policy, the Company's days of inventory further improved to 39 days. 

Looking into the fourth quarter, facing the weak seasonality and uncertainty of the industry, the Company will continue to enforce inventory management and dynamically adjust its utilization rates based on market conditions. At the same time, AUO will proactively develop new products with growth potentials, such as a full series of UHD 4K TV panels or large-screen smartphone panels, hoping to strengthen its customer portfolio and competitiveness in order to build momentum for the business growth next year.

(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Amounts converted by an exchange rate of NTD29.56:USD1 based on Federal Reserve Bank of New York, USA as of September 30, 2013. 
(3) AUO issued new ADSs in May 2013. Basic EPS in both the third quarter and the first nine months of 2013 were calculated based on the weighted average outstanding shares of the first nine months of 2013 (9,256 million shares).
(4) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.
(5) Large size refers to panels that are 10 inches and above in diagonal measurement while small and medium size refers to those below 10 inches.